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UAE cabinet approves strategy for 20pc digital contribution to non-oil economy

Gulf: The UAE Cabinet has approved a strategy in which the digital economy will contribute 20 percent to the gross non-oil national economy in the coming years.

Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said the Cabinet also approved the formation of a digital economy council.

“I chaired a Cabinet meeting at Al Watan Palace in Abu Dhabi, during which we approved the UAE’s strategy for the digital economy,” Sheikh Mohammed said.

“Our goal is for this sector to contribute 20 percent of our gross non-oil national economy in the coming years. And we have formed a Digital Economy Council headed by Minister of Artificial Intelligence Omar Al Olama.” The strategy aims to double the contribution of the digital economy to the UAE’s GDP from 9.7 percent to 19.4 percent within the next 10 years.


Dubai’s non-oil economy surges to 33-month high

Business activity in Dubai’s non-oil private sector economy surged in March to its strongest level in 33 months with new orders increasing as pandemic restrictions eased and Expo 2020 created strong tourism demand. The headline S&P Global Dubai Purchasing Managers’ Index climbed to 55.5 in March from 54.1 in February. A reading above the neutral 50 level indicates economic expansion, while one below points to a contraction. Dubai’s index reading is the strongest since June 2019. The emirate’s non-oil private sector improved at a rate faster than the average in more than 12 years of survey data, S&P Global said.


Bahrain’s economic growth speeds up

Bahrain’s economic expansion gathered pace in the first quarter this year after a strong close to 2021, shows the latest data from the Finance and National Economy Ministry.

Releasing a summary of the performance of key indicators during Q1-2022, the ministry said that the latest numbers are better than pre-pandemic 2019 benchmarks. In the tourism and hospitality sector, the average occupancy rate in 4 and 5-stars hotels was 55 percent while the number of mall visitors increased by 26.9 percent when compared with the same quarter last year. The sector was the worst-hit by the impact of the Covid-19 pandemic, shrinking by 20.4 percent in Q1-2021, when average occupancy at four-star hotels was 43.5 percent. In international trade, the total value of exports rose 64.7 percent during Q1-2022 from the same period last year.


Qatar’s economy grows 2pc in q4 of last year

The Qatari economy achieved a real growth rate – constant prices – of 2 percent in the fourth quarter of 2021 year-on-year, according to data issued by the Planning and Statistics Authority. The quarterly GDP at constant prices reached QR166.242bn in Q4 of 2021 compared to the estimate of QR136.062bn in Q4 of 2020, recording an increase of 2 percent. When compared to Q3 of 2021 revised estimate of QR167.772bn, a decrease of 0.9 percent is also recorded. The quarterly GDP at current prices in Q4 of 2021 is estimated at QR174.266bn. This represents an increase of 29.3 percent compared to the estimate of Q4 of 2020. The nominal gross value added (GVA) estimate of Mining and Quarrying activities is estimated at QR63.639bn in Q4 2021, which shows an increase of 63.7 percent over the estimate of Q4 2020 placed at QR38.879bn.


Rise in oil prices may not benefit Kuwait economy

While the oil prices have been recording daily historical levels in the recent period, reaching about $130 per barrel, some believe that this trend is healthy for the general budget due to the additional revenues recorded above the estimated breakeven price per barrel for the current fiscal year at $90, reports Al-Rai daily. On the surface, this hypothesis seems realistic, considering the flow of an additional $40 to the budget for each barrel at least in the last two months of the fiscal year. However, in accounting, this calculation is illogical, as the rise of the recorded oil will expose the budget to shock the bill for financing the consumption of food and construction goods, which in turn has reached price limits and threaten to swallow the oil gains reaped by the public budget.


Economy recovering, but SMEs need more support’: Oman

Despite the economic recovery being currently witnessed thanks to easing of restrictions and higher oil prices, small and medium enterprises (SMEs) are still not out of the woods, experts believe. With an aim to study the recovery of the business sector post-pandemic, Oman Chamber of Commerce and Industry (OCCI) launched a survey recently. While acknowledging that the economy has begun to recover, Khadijah Mubarak al Batashi, managing director of East Coast for Organising Exhibitions, noted that owners of SMEs require more support.

“The pandemic and closures had a deep impact on SMEs.” She added that although the government has provided “a lot of support and initiatives for SMEs, they need new financial packages as well as marketing outlets to promote their goods throughout the year”.


China’s Iraq investments and its growing foothold in the Middle East

Despite ongoing regional and global turmoil, China hasn’t ceased its investments in the Middle East. A recent report from Fudan University in Shanghai revealed that Beijing secured a new construction deal in Iraq for around $10.5 billion in 2021 — a sum constituting almost one-sixth of China’s Belt and Road Initiative (BRI) investments that year. Iraq has emerged as China’s number one trading partner in the region and third-largest oil supplier, right after Saudi Arabia and Russia. Its energy reserves and strategic location — near the Persian Gulf and Strait of Hormuz — prove critical for the BRI. As Washington withdraws from the region, Beijing is poised to expand its influence; rising economic relations with Baghdad will likely translate to political influence over time. The US, Iran, and Türkiye, all actively and deeply connected to Iraq, are closely watching China’s moves.

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